FAGUMANI KHUNTIA Vs. COMMISSIONER OF INCOME-TAX

JUDGEMENT

(1.) By this application under Section 66(2) of the Indian Income-tax Act 1922, the only question referred to this Court was: "Whether in view of the statement of the Government Cold Storage and the affidavit filed by the assesses the Tribunal was justified to hold such storage at 2600 maunds in the relevant accounting period?"

(2.) These two applications deal with the two assessments of the petitioner for the assessment years 1951-52 and 1952-53, the relevant accounting years being the financial years 1950-51 and 1951-52 respectively. The assessee was a dealer in potatoes, fruits and vegetables. The potatoes sales are entirely self- transaction whereas most of the fruits and vegetables were sold by the assessee on commission basis. While passing the assessment order, the Income-tax Officer observed;

(3.) Mr. S.M. Gupta, learned counsel on behalf of the petitioner did not challenge the applicability of the proviso to Section 13 of the Indian Income-tax Act. He also did not challenge the gross turn-over of Rupees one lakh in the general potato business or the gross turnover in respect of the fruits and vegetables, He did not challenge the rate of profit adopted by the Revenue. All that he challenged before this Court was with regard to the estimate of Rs. 50,000/-as the value of 2,600 maunds of potatoes stored in the Cold storage. It may be remembered here that the Income-tax Appellate Tribunal in their order observed that the quantity of potatoe preserved in the cold Storage was about 2,600 maunds in the relevant accounting years, and therefore, in their opinion, the estimate of turn-over in this account should be Rs. 50,000/-Thus the sole contention of Mr. Gupta was that this estimate by the income-tax authorities is based on no material on record.